February 3, 2011 Southwest Fort Worth Alliance Update
In August of 2008, nearing the end of almost a year of organizing among SFWA's Member Neighborhoods and of negotiations with the Barnett Shale's major natural gas developers, The Southwest Fort Worth Alliance was approached by Vantage Energy, who made an offer to SFWA which SFWA accepted. The agreement and financial terms between SFWA and Vantage Energy were jointly announced, the contractual language was negotiated and finalized, and informational meetings and signing events were jointly organized and announced.
SFWA and its Mineral Owners were promised that all SFWA Member Neighborhoods' Minerals Owners would be given the opportunity to finalize this SFWA/Vantage Energy-Caffey Group deal, over months of singing events that were projected to continue through at least January of 2009. Further, Vantage Energy promised that no one would be left out. SFWA's acceptance of Vantage Energy's offer was contingent on all SFWA Member Neighborhoods' Mineral Owners being included in the deal. The Lease Agreement terms included a signing bonus of $27,500.00 per acre and a 23% true no cost royalty, in addition to strict property rights and environmental protections. Also included in the accepted offer from Vantage Energy was $500,000.00 in Community Improvement Funds.
On October 14, 2008, after only a few weeks of signing events for only nine of SFWA's more than twenty Member Neighborhoods' Mineral Owners, Vantage Energy informed SFWA that it was suspending leasing immediately and that no Community Funds would be provided as agreed to.
Since the leasing cessation occurred, Vantage Energy has approached SFWA three separate times with essentially the same proposal, for SFWA to endorse a new offer from Vantage Energy with a signing bonus of $6,000.00 per acre and a modified lease agreement. The alterations to the lease agreement have changed over the last two years and over the last three proposals from lowering the shut-in royalty to including permanent easement rights and allowing seismic testing. Also, Vantage Energy's proposals have excluded a number of SFWA's Member Neighborhoods from any benefit and any benefit was focused on the neighborhoods in which Vantage Energy already holds significant leases as a result of the events of 2008.
Most recently, Vantage Energy approached SFWA with such a proposal in January of 2011. Once again, Vantage Energy's proposal did not consider the arrangement between and collective goals of all of SFWA's Member Neighborhoods and Mineral Owners. The SFWA Member Neighborhoods' official representatives determined that each individual neighborhood would need to discuss the Vantage Energy proposal and determine an official position and that these individual neighborhood positions, collectively, would determine the SFWA response to Vantage Energy by a majority vote.
By an overwhelming majority vote, the SFWA Member Neighborhoods determined that SFWA could not support Vantage Energy's January 2011 proposal nor lend endorsement to the terms and other conditions posed by Vantage Energy. SFWA's discussions focused on the broken trust between SFWA and Vantage Energy, as Vantage Energy had failed to honor its 2008 agreement with SFWA and failed to honor its public promises to the Mineral Owners of SFWA.
SFWA has remained optimistic that Vantage Energy would eventually return to SFWA, desiring to do the right thing and complete the agreement as originally negotiated and promised. Unfortunately, Vantage Energy has not done so which is a true disappointment. The Southwest Fort Worth Alliance has retained an attorney, Mr. John Howie, to represent the SFWA's interests regarding Vantage Energy's 2008 breach of trust.
As a result of Vantage Energy's decisions and actions in 2008, SFWA must now and will continue to consider the splintered needs of varied groups of residents who are leased; who are leased and located near to potential high-impact drill sites; who are unleased; or who are unleased and now party to the mass litigation that followed Vantage Energy's 2008 breach of trust. All of these people who make up the SFWA are the SFWA; neighbors, friends, and family. All of these people, regardless of their current leasing situation, are our care.
As always, the Southwest Fort Worth Alliance will continue to provide its Mineral Owners with information and new developments, as this ongoing natural gas matter continues.